The minimum wage in 2014
According to the new arrangements of the Ministry of Labor and Social Policy, the minimum wage in 2014 will amount to PLN 1,680. Compared to 2013, it is an increase of PLN 80. Trade unions demanded an increase in the minimum wage by PLN 120 for next year. However, the final decision on this matter will be taken no later than September 15, 2013.
The remuneration amount for 2014 was calculated on the basis of:
- inflation forecast for 2014 - 2.4%;
- real GDP growth forecast for 2014 - 2.5% (for the calculation of the minimum wage, 2/3 of this indicator is assumed, i.e. 1.67%);
- the verification ratio used in relation to the applicable amount of the minimum wage - 1.00875486381. It is obtained by dividing the price increase index in the previous year (103.7%) by the forecast price increase index in the previous year (102.8%).
The procedure for determining the minimum wage
It is worth explaining at this point how exactly the minimum wage is determined. The amount of the minimum wage is determined each year for the following calendar year. The procedure of its determination envisages 3 basic stages:
- presentation by the Council of Ministers of the Tripartite Commission of the required information by June 15,
- determination by the Tripartite Commission of the minimum wage by July 15,
- determination by the Council of Ministers of the minimum wage by September 15 (if the Tripartite Commission fails to determine it).
The Tripartite Commission referred to above is in other words the Commission for Socio-Economic Affairs (Act of 6 July 2001 on the Tripartite Commission for Socio-Economic Affairs and Voivodeship Social Dialogue Commissions). It is a forum for social dialogue conducted to reconcile the interests of employees, employers and the public good. The government, employees and employers are involved in the negotiations of the Committee.
The first stage of determining the salary is the submission by the Ministry to social partners, trade unions and employers of a proposal resulting from the statutory rules. Such information must be provided by June 15 each year at the latest. The Council of Ministers presents the Tripartite Commission:
- a proposal for the amount of the minimum wage in the next year along with the date of changing the amount of this remuneration;
- information on the price index in the previous year;
- information on the following: price index and average wage index forecast for the next year;
- the amount of the average salary in the first quarter of the year in which the negotiations take place;
- information on household expenditure in the previous year;
- information on the employment income share ratio and the average number of dependents of an employed person in the previous year;
- information on the amount of average monthly remuneration in the previous year by type of activity;
- information on the standard of living of various social groups;
- information on the economic conditions of the state, taking into account the situation of the state budget, the requirements of economic development, the level of labor productivity and the need to maintain a high level of employment;
- indicator of the forecast real growth of gross domestic product.
In the second stage, the Tripartite Commission agrees on the amount of the minimum wage in the following year by July 15th. If the Tripartite Commission fails to establish the minimum wage, the Council of Ministers must, by September 15 of each year, set the minimum wage. This is done through the announcement of the Prime Minister in the Official Journal of the Republic of Poland "Monitor Polski". It is important that the amount of the minimum wage set by the Council of Ministers until September 15, may not be lower than the proposed minimum wage, presented by the Council of Ministers of the Trilateral Commission by June 15.
In addition, it is worth knowing that if the price index forecast for the next year, about which the Council of Ministers informs the Trilateral Commission, is:
- at least 105% - there are two dates for changing the minimum wage: from January 1 and from July 1;
- less than 105% - a single date for changing the minimum wage is set: from 1 January.
Based on Article. 5 of the Act on the minimum remuneration for work, it should be noted that the amount of the minimum wage should be set in such a way that the average amount of the minimum wage in a given year increases not less than the price index forecast for a given year.
As for the employee's salary in the first year of work, pursuant to Art. 6 sec. 2 above of the Act, this remuneration may not be lower than 80% of the minimum wage announced by the Council of Ministers.According to these arrangements, in 2014 it will be at least PLN 1,344 (80% of PLN 1,680).